Document Splitting in New General Ledger

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Former Member
February 18, 2016 7 minute read
Document Splitting in New General Ledger

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51 Likes 66,044 Views 37 Comments
Background –
In SAP ERP the document splitting is the most powerful tool is widely and most commonly used. With this
function the document splits the line items based on the “Characteristics” we define in system. Often this
function is used to get the financial statements correctly for segment reporting.
Back to the Basics –
Concept can be explained of document splitting with the help of one of the most basic business transaction as
“Vendor Invoice”. Suppose we have vendor invoice as below which consists of two expense line items say
10,000 in total with 1,000 of tax component which sums to 11,000.
https://blogs.sap.com/2016/02/18/document-splitting-in-new-general-ledger/ 1/25
1. Expense Item 1 for 8,000 where it is assigned to PC – X

2. Expense Item 2 for 2,000 where it is assigned to PC – Y
Account Amount Pro t Centre

Vendor A/C -11,000
Expenses 1 8,000 PC – X
Expenses 2 2,000 PC – Y
Input Tax 1,000
If any person is responsible for PC – X wish to analyze the transactions performed for PC – X, but
unfortunately the user can’t – because of, if you look at the transaction the “Vendor Balance” and “Input Tax”
is cumulative and hence is not assigned to any of the profit center either X or Y.
Now if you look at the transaction above it represents that the total expense is distributed in the ratio of
80% and 20% and same of Profit Centre of X and Y. So base to this the Vendor Balance and Input Tax should
also have split according to 80%-20% rule.
As per the above image the system should have posted the document as per below financial transaction entry
in system –
Okay so the conclusion for whole exercise is, if the user can post the document as above, the reporting will be
pretty particuar and balanced and there won’t be a problem – issue is re-solved.
Its easily said that issue will be solved but why any user will separate the line item as per calculations and
split its bases always on its ratio, especially when there are 100’s of line items sometimes in any document !
And what if system takes care of this?
Well the answer is Yes, and that’s what the document splitting is all about!
Now we will understand the Document Splitting elements and key concepts
–
Passive Splitting – This type of splitting is mostly occurs when the payment transaction is posted for a
vendor invoice. Now system splits the payment document bases on how the vendor invoice was split in place
already.
Active Splitting – In Active Splitting the document is split according to mySAP ERP predefined rules. SAP
almost supports all the business process transactions but if it doesn’t suit to any requirement the own
splitting rules can be created.
Zero Balancing Splitting – When the amounts within financial documents are not able to balance out to
Debit of Profit Centre and Credit of Profit Centre which does not Net Off as its own, SAP then
automatically generates new line item to balance the document. We will see the example in following
section of this scenario.
Item Category – Item category categorizes the general ledger accounts for document splitting. In the
configuration each GL account is assigned to item category. Just to name a few like 01000 – Balance Sheet
Account, 02000 – Customer, 03000 – Vendor and so on.
Business Transaction – Business transaction is real scenario of business processes happens in organization
such as vendor invoice, customer invoice etc.
Business Transaction Variant – In the SAP, financial postings are derives the item category for individual
line item. Business transaction variant always works in conjunction with business transaction where
business transaction restricts the business processes to be posted to. System validates a check all
postings against the item category to validate if these postings are allowed by splitting rule if not then
understand this failed.
Document Splitting Method – Document splitting method works in combination with business transaction
and business transaction variant it determines the document splitting rule.
Document Splitting Rule: Document splitting rule determines which item categories will be split and from
which item categories it will derive the account assignment.
Let us see the actual example from system of Document Splitting for vendor
invoice –
If we are posting an invoice from FB60 with two different expenses line item as below with two different cost
centers assigned now system has derived the profit center from its cost centers mentioned in line item.
Simulate this document to see pre-posting view with line item and associated assignments.
Now press F3 or Back button and come to main screen. Now go to Menu Bar Document –> Simulate with
General Ledger to see the ledger view of this document.
Once clicked on simulate with general ledger, document can be seen as below as “Document Split”
functionality.
Document Splitting – Zero Balancing
As discussed above when system is not able to balance out the transaction entry based on its own it balances
out by “zero balancing” account. System adds the zero balance account at its own to make balance zero for
transaction. We will see the example for this now –
We will post the transaction via FB50.
Now simulate this with General Ledger View as below
If you look at above and notice simulated “General Ledger View” system has automatically generated the
“Zero Balance Clearing A/C.”
Now let us look at the con guration of document splitting –
1. Classify GL Accounts for Document Splitting –
SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting
(New) –> Business Transaction –> Document Splitting –> Classify G/L Accounts for Document
Splitting
Here in this step GL’s are classified according to item categories according to business transaction nature. It
is recommended that instead of assigned item category to each individual general ledger account try
maintaining the item categories for “Range of General Ledger Accounts”.
2. Classify Document Types for Document Splitting –
(New) –> Business Transaction –> Document Splitting –> Classify Document Type for Document
Splitting
In this step the “Business Transaction” and “Business Transaction Variant” is assigned to document types.
Now almost every financial transaction in considered for document splitting.
3. De ne Zero Balance Clearing Account –
(New) –> Business Transaction –> Document Splitting –> Define Zero Balance Clearing Account
In this step we have to define the zero balance clearing account which will be used to generate and balance
out financial entry when it is not possible to balance out at its own, as we have seen this example earlier.
4. De ne Document Splitting Characteristics for General Ledger Accounting –
(New) –> Business Transaction –> Document Splitting –>Define Document Splitting
Characteristics for General Ledger Accounting
This is one of the most important configurations step in document splitting. In this step we have to define
the splitting characteristics. Additionally you can define whether this should be Zero Balance and
Mandatory.
5. Edit Constants for Non Assigned Processes –
SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting (New) –>
Business Transaction –> Document Splitting –>Edit Constants for Non Assigned Processes
In this step the constants are defined which helps to assigned the default account assignment when is not
able to derive from any of the sources.
6. Activate Document Splitting
SPRO –> SAP Reference IMG –> Financial Accounting (New) –> General Ledger Accounting (New) –>
Business Transaction –> Document Splitting –>Activate Document Splitting
Finally the step to activate document splitting with additional settings like “Inheritance” and Activation of
Document Splitting.
Select check box “Document Splitting” and apply appropriate method. SAP Standard pre-delivered method is
“0000000012”.
Selecting the Inheritance signifies the line items which do not have account assignment will derive the
account assignment from other line item.
Selecting Standard A/C Assgnmnt means system will set the standard account assignment for non-assigned
line items. When this indicator is selected “Constant” needs to be maintained.
Activate of Document Splitting happens at client level but it is always possible to control of activation and
deactivation at company code level.
Experts guidance and comments / suggestions will be very helpful on this.
Alert Moderator
Assigned tags
FIN (Finance) |
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37 Comments
You must be Logged on to comment or reply to a post.
Ajay Maheshwari SAP Trainer
February 18, 2016 at 9:34 am

Great Going Pankaj Bhalerao !!
Superb compilation and beautifully explained. Am honored to have had a student like you, who equally
believes in sharing the knowledge!!
Regards
Ajay M
Like (1)
Former Member | Post author

Thank you Ajay Sir.
I appreciate your comments. What else can my day to receive the encouraging comment from my role model.
What I am today, progressed and grown up in SAP career is all SDN has major contribution – now its my turn
to give our community back.
I have learnt so many things from Ajay Maheshwari SAP Trainer Rajneesh Saxena Kamal Kumar SAP
Consultant/Trainer Dave AdoniSRINU BORIGI Sanil Bhandari and may more.
What I am today learnt in SAP all credit goes you to all and who contributed to this forums.
Thanks for support. I will my try level best to contribute more.
Regards,
Pankaj Bhalerao.
Like (0)
Sanil Bhandari
Thanks a lot Pankaj Bhalerao
The explanation is very precise and useful, something which most of the FICO folks miss out and claim to work
in New GL. This will be very useful.
Regards
Sanil Bhandari
Like (0)
Rajneesh Saxena

Hi Pankaj,
You already got amazing comment by Supremo i.e Ajay Sir. I don’t think any thing can encourage you more
than that.
Good work. Keep it up. Always be helpful to the community. Community needs persons like you.
Regards
Rajneesh
Like (0)
Former Member

Very Nice document Pankaj. One more good contribution for our forum and it will really help us all.
Lucky one you got the comment from Ajay Maheshwari SAP Trainer sir.
Regards,
Sharu.
Like (0)
Former Member

Hi
Very valuable information provided you. It helped me a lot in understanding the subject thoroughly.
Thanks for your e ort in this document.
Regards
Archana
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Former Member
February 22, 2016 at 5:01 pm

Hello Pankaj,
Thank you very much for this document. It really helped me.
Regards,
Charu.
Like (0)
Emily Ji
March 11, 2016 at 11:07 am

A detail document and explanation. Thanks a lot.
Like (0)
March 15, 2016 at 7:15 pm

Thanks Emily for appreciating words.
Regards,
Pankaj Bhalerao.
Like (0)
Vivek Srivastava
April 12, 2016 at 3:18 pm

Excellent Document!!!!
Thank you for sharing….
Vivek
Like (0)
April 14, 2016 at 9:33 pm

Thanks Vivek for kind words.
Regards,
Pankaj Bhalerao
Like (0)
Former Member
April 13, 2016 at 5:42 am

Very good document. explained in easy way.
Like (0)
April 14, 2016 at 9:33 pm

Thanks Sudhir for your comments.
Regards,
Pankaj Bhalerao.
Like (0)
Former Member
April 15, 2016 at 10:11 am

Hi Pankaj,
Very nice and valuable document.
Regards,
Umamageshwaran.S
Like (0)
May 24, 2016 at 8:42 am

Thank you Umamageshwaran for your comments.
Regards,
Pankaj Bhalerao.
Like (0)
Manjunath v
May 11, 2016 at 10:42 am

Very good document explained very well thank you for sharing.
Like (0)
May 24, 2016 at 8:42 am

Thank you Manujnath for your comments.
Regards,
Pankaj Bhalerao.
Like (0)
Former Member
May 22, 2016 at 12:08 pm

thank you for your inputs
Like (0)
May 24, 2016 at 8:43 am

Thank you Shivakumar for your comment.
Regards,
Pankaj Bhalerao.
Like (0)
Former Member
June 17, 2016 at 2:58 pm

I get all the time doc splitting – related errors.. Thanks to your document I will start to understand why ..
Thanks for your document
KR – Loïc
Like (0)
June 20, 2016 at 3:26 pm

Thanks Loic,
Good to know it helped you to understand the issues and errors you faced. Also thanks for your comments.
Regards,
Pankaj Bhalerao.
Like (0)
Former Member
June 17, 2016 at 3:21 pm

Hello,
Excellent document.
all the best erwin
Like (0)
June 20, 2016 at 3:26 pm

Thanks Erwin for your appreciating comments.
Regards,
Pankaj Bhalerao.
Like (0)
João Paulo Campos Amaral de Almeida
June 18, 2016 at 3:40 am
Hi,
According note 1085921 SAP recommends do not use method standard, so you should create by copying the
0_12 as follow:
2.2 De ne document splitting method
The document splitting method contains the rules governing how the individual item categories aredealt with.
In case changes need to be applied to standard customizing, SAP recommends copying the standard method
0000000012 and applying the changes.
Sequence:
– Create an own de ned method (e.g. Z000000012):
IMG-path: Financial Accounting (New) – General Ledger Accounting (New) – Business Transactions –
Document Splitting – Extended Document Splitting – De ne Document Splitting Method
– Select all rules included in the standard method and copy it to the Z000000012:
IMG-path: Financial Accounting (New) – General Ledger Accounting (New) – Business Transactions –
Document Splitting – Extended Document Splitting – De ne Document Splitting Rule
– Apply the changes needed
– Activate the new to be used document splitting method
This copy is requires because SAP can access the system and update when is necessary or if you need create
a new transaction and variant.
Please check the note before to con gure.
Thanks.
JPA
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Former Member
June 22, 2016 at 8:03 am

Very Useful Document, explained very well.
Like (0)
June 22, 2016 at 10:30 am

Thank you very much Priya for your comments.
Regards,
Pankaj Bhalerao.
Like (0)
Former Member
August 3, 2016 at 10:23 am

Nico Documents Pankaj.
Like (0)
August 5, 2016 at 1:57 pm

Thank you Bhaskar for words.
Cheers,
Pankaj Bhalerao.
Like (0)
Former Member
April 6, 2017 at 4:16 pm

Nicely Explain. Thank you.
Like (0)
Former Member
June 22, 2017 at 3:31 am

Great explanation, really helpful thank you for sharing this.
Like (0)
Former Member
June 30, 2017 at 6:41 am
Well Described….Thank you
Like (0)
Former Member
January 14, 2018 at 9:36 am

Thankyou so much it was very useful…
Like (0)
Former Member
January 16, 2018 at 10:39 am

Thanks Pankaj so much about this document.
It would be much appreciate if you could mention more about the fact that Tax items (auto generated by
system during simulation or posting) can not ll-in Business Area.
Have you faced with this case in real and any completely solution suggest for us ? Thank you.
Like (0)
Former Member
March 15, 2018 at 10:10 am

Dear Pankaj Bhalerao
I would just say that you made me cleared about the core concept. Explained in a logical way. Keep it
bro……!!!!!!
Like (0)
Gopinath Harikrishnan
April 2, 2018 at 1:33 pm
Hi,
it is very good explanation.
Thanks bro.
Like (0)
Gurram Srini
May 1, 2018 at 2:11 am

Thanks
Like (0)
prasanna kumar kalavalapudi
April 20, 2019 at 7:53 pm

Great explanation about document splitting, easyly everyone can understad this scenario.
Like (0)
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5/2/2019 Document Splitting in New General Ledger | SAP Blogs

Document Splitting in New General Ledger

51 Likes 66,044 Views 37 Comments

Back to the Basics –

1. Expense Item 1 for 8,000 where it is assigned to PC – X

Account Amount Pro t Centre

Document Splitting – Zero Balancing

We will post the transaction via FB50.

Now simulate this with General Ledger View as below

Now let us look at the con guration of document splitting –

1. Classify GL Accounts for Document Splitting –

2. Classify Document Types for Document Splitting –

3. De ne Zero Balance Clearing Account –

4. De ne Document Splitting Characteristics for General Ledger Accounting –

5. Edit Constants for Non Assigned Processes –

6. Activate Document Splitting

Experts guidance and comments / suggestions will be very helpful on this.

Related Blog Posts

You must be Logged on to comment or reply to a post.

Ajay Maheshwari SAP Trainer

February 18, 2016 at 9:34 am

Former Member | Post author

February 18, 2016 at 10:45 am

Thanks for support. I will my try level best to contribute more.

February 18, 2016 at 11:23 am

February 18, 2016 at 10:52 am

February 22, 2016 at 7:23 am

Thanks for your e ort in this document.

February 22, 2016 at 5:01 pm

March 11, 2016 at 11:07 am

Former Member | Post author

March 15, 2016 at 7:15 pm

April 12, 2016 at 3:18 pm

Thank you for sharing….

Former Member | Post author

April 14, 2016 at 9:33 pm

April 13, 2016 at 5:42 am

Former Member | Post author

April 14, 2016 at 9:33 pm

April 15, 2016 at 10:11 am

Very nice and valuable document.

Former Member | Post author

May 24, 2016 at 8:42 am

May 11, 2016 at 10:42 am

Former Member | Post author

May 24, 2016 at 8:42 am

May 22, 2016 at 12:08 pm

Former Member | Post author

May 24, 2016 at 8:43 am

June 17, 2016 at 2:58 pm

Thanks for your document

Former Member | Post author

June 20, 2016 at 3:26 pm

June 17, 2016 at 3:21 pm

all the best erwin

Former Member | Post author

June 20, 2016 at 3:26 pm

João Paulo Campos Amaral de Almeida

June 18, 2016 at 3:40 am

2.2 De ne document splitting method

– Create an own de ned method (e.g. Z000000012):

– Apply the changes needed

– Activate the new to be used document splitting method

Please check the note before to con gure.